Head of Romanian Fiscal Council argues for stronger budget revenues

Romania's budget revenues from national sources, including but not limited to taxes, should reach over 32-33% of the GDP in a few years, according to the head of the Fiscal Council, Daniel Daianu, Economica.netreported.

In 2018-2019 the total budget revenues from local resources were around 28.5% of GDP.

Thus, Daianu implies a net increase of 5% of GDP, or EUR 10 billion. Including the European money (the transfers from the European Union's budget), the public budget resources could reach 35-36% of GDP, Daianu reasoned.

He argued in favor of increasing the budget revenues since the deficit this year was caused not only by one-off expenditures (caused by the health crisis) - but also by rigid expenditures (that can hardly be reduced).

He argued that increasing fiscal and budget revenues by fighting tax evasion and tax optimization is a common topic in Europe (EU) and the US.

Romania must capitalize on this new vision and attitude of EU and US partners to lobby for a predictable fiscal environment and a robust public budget that finances basic public goods.

That means to be good corporate citizens," he said.

"The tax regime must be transparent and fair; all citizens and companies must pay - eliminate the loopholes that make the tax regime unfair. Tax evasion should not be tolerated, as well as incorrect tax optimizations, or undue rents," Daianu said.

(Photo: Adrian Grycuk/ Wikipedia)